Report Title:

University of Hawaii; Special and Revolving Funds

Description:

Consolidates and eliminates existing special and revolving funds throughout the University of Hawaii system for efficient management and greater flexibility. Establishes four special funds to provide individual campuses with the flexibility in establishing and supporting new and existing programs.

THE SENATE

S.B. NO.

905

TWENTY-THIRD LEGISLATURE, 2005

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

Relating to the university of Hawaii.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Chapter 304, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§304-   University of Hawaii at Manoa special fund. (a) Notwithstanding section 304-8, there is established in the state treasury the University of Hawaii at Manoa special fund to receive, disburse, and account for funds of programs and activities of the University of Hawaii at Manoa, including but not limited to off-campus programs, summer session programs, overseas programs, evening sessions, study abroad, exchange programs, cultural enrichment programs, and consultative services which help make available the resources of the University of Hawaii at Manoa to the communities they serve.

(b) The special fund may include deposits from:

(1) The University of Hawaii tuition and fees special fund in section 304-16.5;

(2) Fees, fines, and other money collected for:

(A) Transcripts and diplomas;

(B) The libraries;

(C) Facility use;

(D) Child care;

(E) Auxiliary enterprises;

(F) Alumni;

(G) Conferences and seminars;

(H) Parking; and

(I) Other activities related to the University of Hawaii at Manoa.

(c) The chancellor of the University of Hawaii at Manoa campus or a designee is authorized to expend funds from the appropriate account in the special fund for all costs associated with the activities and programs of the University of Hawaii at Manoa including, but not limited to, conducting conferences, seminars and courses, expenses for honoraria, hotel and room rentals, food and refreshment, printing and mailing, airfare and per diem, leis, rental of audio visual equipment, and conference supplies and materials."

SECTION 2. Chapter 304, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§304-   University of Hawaii at Hilo special fund. (a) Notwithstanding section 304-8, there is established in the state treasury the University of Hawaii at Hilo special fund to receive, disburse, and account for funds of programs and activities of the University of Hawaii at Hilo, including but not limited to, off-campus programs, summer session programs, overseas programs, evening sessions, study abroad, exchange programs, cultural enrichment programs, and consultative services which help make available the resources of the University of Hawaii at Hilo to the communities they serve.

(b) The special fund may include deposits from:

(1) The University of Hawaii tuition and fees special fund in section 304-16.5;

(2) Tuition, fees, and charges for affiliated instructional, training, and public service courses and programs; and

(3) Fees, fines, and other money collected for:

(A) Student health;

(B) Transcripts and diplomas;

(C) The libraries;

(D) Facility use;

(E) Child care;

(F) Auxiliary enterprises;

(G) Alumni;

(H) Conferences and seminars;

(I) Parking;

(J) Hawaiian language material;

(K) The University of Hawaii at Hilo theatre program; and

(L) Other activities related to the University of Hawaii at Hilo.

(c) The chancellor of the University of Hawaii at Hilo campus or a designee is authorized to expend funds from the appropriate account in the special fund for all costs associated with the activities and programs of the University of Hawaii at Hilo, including but not limited to, conducting conferences, seminars and courses, expenses for honoraria, hotel and room rentals, food and refreshment, printing and mailing, airfare and per diem, leis, rental of audio visual equipment, and conferences supplies and materials."

SECTION 3. Chapter 304, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§304-   University of Hawaii-West Oahu special fund. (a) Notwithstanding section 304-8, there is established in the state treasury the University of Hawaii-West Oahu special fund to receive, disburse, and account for funds of programs and activities of the University of Hawaii-West Oahu, including but not limited to off-campus programs, summer session programs, overseas programs, evening sessions, study abroad, exchange programs, cultural enrichment programs, and consultative services which help make available the resources of the University of Hawaii-West Oahu to the communities they serve.

(b) The special fund may include deposits from:

(1) The University of Hawaii tuition and fees special fund in section 304-16.5;

(2) Tuition, fees, and charges for affiliated instructional, training, and public service courses and programs; and

(3) Fees, fines, and other money collected for:

(A) Student health;

(B) Transcripts and diplomas;

(C) The libraries;

(D) Facility use;

(E) Child care;

(F) Auxiliary enterprises;

(G) Alumni;

(H) Conferences and seminars;

(I) Parking; and

(J) Other activities related to the University of Hawaii-West Oahu.

(c) The chancellor of the University of Hawaii-West Oahu campus or a designee is authorized to expend funds from the appropriate account in the special fund for all costs associated with the activities and programs of the University of Hawaii-West Oahu, including but not limited to, conducting conferences, seminars and courses, expenses for honoraria, hotel and room rentals, food and refreshment, printing and mailing, airfare and per diem, leis, rental of audio visual equipment, and conference supplies and materials."

SECTION 4. Chapter 304, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§304-   University of Hawaii systemwide support special fund. (a) Notwithstanding any law to the contrary, for the purpose of meeting certain operating costs of the University of Hawaii system as provided in subsection (c), the University of Hawaii may impose assessments against, or transfer revenues from the short-term investment of cash from any special or revolving fund established under this chapter.

(b) There is established in the state treasury the University of Hawaii systemwide support special fund into which shall be deposited:

(1) Legislative appropriations;

(2) Assessments collected pursuant to subsection (a); and

(3) Revenues from the short-term investment of cash transferred pursuant to subsection (a).

(c) Revenues deposited into this fund shall be expended for operating costs incurred by one or more campus or major unit of the University of Hawaii system, including but not limited to, the payment of judgments and settlements, financial audits, accreditation fees, dues for institutional membership, publications, training and staff development activities, improvements in information technology, and such other costs that are necessary for the maintenance or improvement of the University system's operation.

(d) Pursuant to section 304-8(b), the University of Hawaii shall submit an annual report to the legislature on all income and expenditures of this fund, including all assessments and transfers pursuant to subsection (a)."

SECTION 5. Section 304-1.5, Hawaii Revised Statutes, is amended as follows:

1. By amending the title to read:

"[[]§304-1.5[]] University of Hawaii-West Oahu development special fund."

2. By amending subsection (a) to read:

"(a) There is established within the treasury of the State a special fund to be known as the University of Hawaii-West Oahu development special fund. The proceeds of the special fund shall be used for the following purposes:

(1) Planning, land acquisition, design, construction, and equipment necessary for the development of the permanent campus of the University of Hawaii-West Oahu in Kapolei; and

(2) Planning, land acquisition, design, improvement, and construction of infrastructure and other public or common facilities necessary for the development of the permanent campus of the University of Hawaii-West Oahu in Kapolei."

SECTION 6. Section 304-8.1, Hawaii Revised Statutes, is amended as follows:

1. By amending the title to read:

"§304-8.1 Research and training [revolving] special fund."

2. By amending subsection (a) to read:

"(a) There is established a University of Hawaii research and training [revolving] special fund into which shall be deposited one hundred per cent of the total amount of indirect overhead revenues generated by the university from research and training programs. The board of regents of the University of Hawaii is authorized to expend one hundred per cent of the revenues deposited in the fund for:

(1) Research and training purposes which may result in additional research and training grants and contracts;

(2) Facilitating research and training at the university; and

(3) Further deposit into the discoveries and inventions revolving fund and the University of Hawaii housing assistance revolving fund."

3. By amending subsection (c) to read:

"(c) Notwithstanding sections 304-10, 304-8.92, and 304-8.96 to the contrary, the board of regents or its designee, may establish a separate account within the research and training [revolving] special fund for the purpose of providing advance funding to meet reimbursable costs incurred in connection with federally financed research and training projects. Any reimbursement received as a result of providing advance funding shall be deposited into the research and training [revolving] special fund to be used for the purpose of meeting reimbursable costs incurred in connection with federally financed projects."

SECTION 7. Section 304-8.41, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) Any law to the contrary notwithstanding, [from July 1, 2001, to June 30, 2004,] the university may transfer all funds at its disposal, with the exception of general funds, into this revolving fund to finance the establishment of new enterprises."

SECTION 8. Section 304-8.7, Hawaii Revised Statutes, is amended to read as follows:

"§304-8.7 University of Hawaii at Manoa intercollegiate athletics revolving fund and University of Hawaii at Hilo intercollegiate athletics [revolving] special fund. Notwithstanding any other law to the contrary, there are established [revolving] special funds for the intercollegiate athletic programs of the University of Hawaii at Manoa and the University of Hawaii at Hilo, which shall be used to receive, deposit, disburse, and account for funds from the activities of the intercollegiate athletic programs. The university may establish appropriate charges for activities related to its athletic programs and the use of its athletic facilities, the proceeds from which shall be deposited into these revolving funds.

The university shall maintain the financial integrity and viability of these [revolving] special funds, including the maintenance of an adequate reserve to cope with the various factors that impact the revenue structure of an intercollegiate athletic program."

SECTION 9. Section 304-8.96, Hawaii Revised Statutes, is amended to read as follows:

"§304-8.96 University of Hawaii housing assistance [revolving] special fund. (a) There is established a housing assistance [revolving] special fund into which shall be deposited a portion of the total indirect overhead funds generated by the university for research and training purposes in the prior fiscal year as determined by the board of regents. The fund shall be used to:

(1) Implement the University of Hawaii housing assistance master plan, in accordance with policies adopted by the board of regents; and

(2) Account for all transactions of the university housing assistance program, including but not limited to revenues, expenditures, loans, and transfers.

(b) The University of Hawaii shall provide an annual report to the governor and the legislature describing all transactions and activities involved in the administration of the housing assistance [revolving] special fund."

SECTION 10. Section 305-4, Hawaii Revised Statutes, is amended to read as follows:

"§305-4 [Special] Community colleges special fund. (a) Section 304-8 notwithstanding, there is hereby created a special fund to receive, disburse, and account for funds of [special] programs and activities of the community colleges, including but not limited to off-campus programs, summer session programs, overseas programs, evening sessions, study abroad, exchange programs, cultural enrichment programs, and consultative services which help make available the resources of the community colleges to the communities they serve.

(b) The special fund may include deposits from:

(1) The University of Hawaii tuition and fees special fund as established in section 304-16.5;

(2) Tuition, fees, and charges for affiliated instructional, training, and public service courses and programs; and

(3) Fees, fines and other money collected [paid] for:

(A) Student health;

(B) [Transcript] Transcripts and [diploma;] diplomas;

(C) [Library;] The libraries;

(D) Facility use;

(E) Child care;

(F) Auxiliary enterprises;

(G) Alumni; [and]

(H) Conferences and seminars;

(I) Parking; and

[(H)] (J) Other [related] activities related to the community colleges.

(c) The chancellor of each community college or a designee is authorized to expend funds from the appropriate account in the special fund for all costs associated with the activities and programs of the University of Hawaii community colleges, including, but not limited to, conducting conferences, seminars and courses, expenses for honoraria, hotel and room rentals, food and refreshment, printing and mailing, airfare and per diem, leis, rental of audiovisual equipment, and conference supplies and materials."

SECTION 11. Section 304-8.3, Hawaii Revised Statutes, is repealed.

["[§304-8.3] Transcript and diploma revolving fund. There is established a revolving fund for transcripts and diplomas which shall be used to defray the cost of transcripts and diplomas and which shall be replenished through charges made for transcripts and diplomas or through transfers from other accounts or funds."]

SECTION 12. Section 304-8.4, Hawaii Revised Statutes, is repealed.

["§304-8.4 Vocational and technical training projects revolving fund. There is established a revolving fund for the vocational and technical training projects of the community colleges and the University of Hawaii at Hilo into which shall be deposited the receipts from fees for services, supplies, and use of equipment provided by or in connection with these projects. Funds deposited in this account shall be expended for vocational and technical training projects, and supplies, equipment, and services related thereto.

The University of Hawaii at Hilo shall report as of the close of each fiscal year to the governor and the legislature on the revolving fund's revenues and expenditures for the reported year. These reports shall be submitted not later than twenty days prior to the convening of each regular session."]

SECTION 13. Section 304-8.5, Hawaii Revised Statutes, is repealed.

["§304-8.5 Animal research farm, Waialee, Oahu revolving fund. There is established a revolving fund for the animal research farm, Waialee, Oahu, operated by the college of tropical agriculture and human resources, University of Hawaii, into which shall be deposited the receipts from fees realized from the sale of livestock, services, and supplies. Funds deposited in this account shall be expended for animal research, and services and supplies related thereto."]

SECTION 14. Section 304-8.91, Hawaii Revised Statutes, is repealed.

["§304-8.91 Child care programs revolving fund. There is established a child care programs revolving fund for the operation of child care programs and the construction and renovation of child care centers established by the University of Hawaii. Fees charged for child care at child care programs, proceeds from donations to the university for child care programs, and proceeds from loans or other instruments of indebtedness for the construction or renovation of child care centers, shall be deposited into the revolving fund. Expenditures from the revolving fund shall be made for the operation of child care programs and payment of principal and interest on obligations incurred for the construction or renovation of child care centers."]

SECTION 15. Section 304-8.93, Hawaii Revised Statutes, is repealed.

["[§304-8.93] Library special fund. There is established a special fund for the libraries of the University of Hawaii into which shall be deposited all fines, fees, and other revenue derived from the libraries' operations. Moneys deposited in this fund may be expended to replace or repair lost, damaged, stolen, or outdated books, serials, and periodicals, or to support and improve the services provided by the libraries. The amounts allocated to each campus library from the special fund shall be proportionate to the amount of revenues generated by each library."]

SECTION 16. Section 304-8.94, Hawaii Revised Statutes, is repealed.

["§304-8.94 Conference center revolving fund. There is established a revolving fund for the conference center program in the college of continuing education and community service of the University of Hawaii, Manoa campus. All fees, charges, and other moneys collected in conjunction with the conference center program shall be deposited in the revolving fund. The dean of the college of continuing education and community service is authorized to expend funds from the revolving fund for all costs associated with conducting conferences, seminars, and courses by the conference center program, including but not limited to expenses for honoraria, hotel and room rentals, food and refreshment, printing and mailing, airfare and per diem, leis, rental of audio visual equipment, and conference supplies and materials."]

SECTION 17. Section 304-8.945, Hawaii Revised Statutes, is repealed.

["[§304-8.945 Conference center revolving fund for Hilo campus.] (a) As used in this section, "dean" means the dean of the college of continuing education and community service. There is established a revolving fund for the conference center program in the college of continuing education and community service of the University of Hawaii, Hilo campus. All fees, charges, and other moneys collected in conjunction with the conference center program shall be deposited in the revolving fund. The dean is authorized to expend funds from the revolving fund for all costs associated with conducting conferences, seminars, and courses by the conference center program, including but not limited to, expenses for honoraria, hotel and room rentals, food and refreshment, printing and mailing, airfare and per diem, leis, rental of audio-visual equipment, and conference supplies and materials, without regard to sections 103-22 and 103-42.

(b) The dean shall prepare an annual report to the legislature accounting for all income and expenditures of the revolving fund."]

SECTION 18. Section 304-8.946, Hawaii Revised Statutes, is repealed.

["[§304-8.946] University of Hawaii-Hilo theatre revolving fund. There is created within the state treasury a University of Hawaii-Hilo theatre revolving fund, which shall consist of admissions, advertising sales, corporate sponsorships, marketing, merchandising, donations, fund-raising, fees, charges, and other moneys collected in conjunction with the University of Hawaii-Hilo theatre program. The revolving fund shall be administered by the office of administrative affairs of the University of Hawaii-Hilo. Funds may be expended for all costs associated with the theatre program, including artists' fees, production costs, personnel costs, honoraria, per diem, hotel and room rentals, food and refreshments, printing and mailing, advertising, airfare, leis, rental or purchase of equipment, and theater supplies and materials."]

SECTION 19. Section 304-8.955, Hawaii Revised Statutes, is repealed.

["[§304-8.955] University of Hawaii community services special fund. (a) There is established the University of Hawaii community services special fund. Except as otherwise provided by law, all revenues, including interest, derived and collected from the university's provision of public service programs shall be deposited into the University of Hawaii community services special fund. The university may establish and collect fees and charges for public service programs. All revenues deposited into the University of Hawaii community services special fund shall be used exclusively for the costs of providing public service programs. The university may establish accounts under the community services special fund to facilitate the administration of this fund among the various campuses and operating units of the University of Hawaii system. All expenditures from this fund shall be subject to legislative appropriation.

(b) As used in this section, "public service programs" means:

(1) Noncredit educational programs in professional development and training, personal growth, and cultural enrichment; and

(2) Cooperative extension and consultative services."]

SECTION 20. Section 304-8.97, Hawaii Revised Statutes, is repealed.

["§304-8.97 University of Hawaii alumni revolving fund. There is established a revolving fund to be known as the University of Hawaii alumni revolving fund, into which shall be deposited funds and proceeds received by the university from alumni activities and donations from alumni. Funds deposited into this account may be expended by the university for all costs associated with conducting alumni affairs activities and programs for the university system, including but not limited to expenses for honoraria, hotel and room rentals, food and refreshment, printing and mailing, banners and signs, plaques and awards, airfare and per diem, leis, rental of audio visual, musical and stage equipment, and activity supplies and materials, without regard to statutory competitive bidding requirements."]

SECTION 21. Section 304-8.98, Hawaii Revised Statutes, is repealed.

["[§304-8.98] University of Hawaii graduate application revolving fund. There is established a University of Hawaii graduate application revolving fund for graduate program application processing. The board of regents may establish appropriate charges for application processing. The revenues from such charges shall be deposited into this revolving fund and be used to pay the costs of processing applications to all graduate programs."]

SECTION 22. Section 304-68.5, Hawaii Revised Statutes, is repealed.

["[§304-68.5] International exchange health care tourism revolving fund. (a) There is established a revolving fund for the international exchange of health care tourism program into which shall be deposited all donations, gifts, contributions, legislative appropriations, and moneys generated by the program through education, training, and research contracts and grants. Moneys deposited into this fund for the school of medicine and the school of nursing shall be divided into separate accounts for each school, provided that moneys not designated for use by a particular school shall be divided equally. Moneys shall be expended from each account by the school of medicine and the school of nursing, for student aid, training projects, teaching, supplies, services, and activities related to the development and promotion of the health-related tourism education program.

(b) The deans of the school of medicine and the school of nursing shall jointly prepare and submit an annual report to the legislature accounting for all income and expenditures of the revolving fund.

(c) All unexpended and unencumbered moneys appropriated by the legislature remaining in the fund at the close of each fiscal year which are deemed, by the director of finance, to be in excess of the moneys necessary to carry out the purposes of this section over the next following fiscal year shall lapse to the credit of the state general fund."]

SECTION 23. Section 304-77, Hawaii Revised Statutes, is repealed.

["[§304-77] Seed distribution program; revolving fund. There is established a revolving fund, the purpose of which shall be to enable the seed distribution program to operate at a level that will adequately meet the demand for seed. The fund shall be used for the cultivation and production of seeds and for research and developmental purposes directly related to cultivation and production. The fund shall be administered by the college of tropical agriculture and human resources of the University of Hawaii. All sums withdrawn from the fund shall be reimbursed or restored from the proceeds realized through the sale of seeds."]

SECTION 24. Section 304-112, Hawaii Revised Statutes, is repealed.

["[§304-112] Western Governors University special fund. There is established in the treasury of the State a Western Governors University special fund into which shall be deposited all revenues derived from the State's participation in the Western Governors University, except University of Hawaii income from regular credit tuition and tuition-related course and fee charges to students. The fund shall be administered by the board of regents of the University of Hawaii and shall be used for the State's membership and participation in the Western Governors University. The special fund shall not be subject to sections 36-27 and 36-30 relating to special fund reimbursements to the state general fund."]

SECTION 25. Section 305-5, Hawaii Revised Statutes, is repealed.

["§305-5 Community college conference center revolving fund. (a) There is established a revolving fund for conference center programs conducted by the various community colleges. All fees, charges, and other moneys collected in conjunction with the conference center programs of each community college shall be deposited in separate accounts within the revolving fund. The provost of each college or a designee is authorized to expend funds from the appropriate account in the revolving fund for all costs associated with conducting conferences, seminars, and courses by the conference center programs, including but not be limited to, expenses for honoraria, hotel and room rentals, food and refreshment, printing and mailing, airfare and per diem, leis, rental of audio visual equipment, and conference supplies and materials, without regard to section 103-42 and any competitive bidding requirements pursuant to state procurement requirements.

(b) The provosts of the community colleges shall prepare an annual report to the legislature accounting for all income and expenditures of each separate account within the revolving fund."]

SECTION 26. Section 308-2, Hawaii Revised Statutes, is repealed.

["§308-2 Revolving fund. There is established in the state treasury a fund to be known as the university parking revolving fund. All fees, fines, or other moneys collected under this chapter shall be deposited in this fund. All moneys in the fund are hereby appropriated for the purposes of and shall be expended by the board of regents in the manner specified by section 306-10."]

SECTION 27. All fund balances remaining unencumbered and unexpended as of June 30, 2005 in the student health center revolving fund; transcript and diploma revolving fund; vocational and technical training revolving fund; animal research farm, Waialee, Oahu revolving fund; child care programs revolving fund; library special fund; conference center revolving fund; conference center revolving fund for Hilo campus; University of Hawaii-Hilo theatre revolving fund; University of Hawaii community services special fund; University of Hawaii alumni revolving fund; University of Hawaii graduate application revolving fund; international exchange health care tourism revolving fund; seed distribution program revolving fund; Western Governors University special fund, and the community college conference center revolving fund shall be transferred to the credit of the University of Hawaii at Manoa special fund, University of Hawaii at Hilo special fund, the University of Hawaii systemwide support special fund, and University of Hawaii-West Oahu special fund as established in sections 1, 2, 3, and 4 of this Act, the community colleges special fund established under section 305-4, or the University of Hawaii tuition and fees special fund, as appropriate.

SECTION 28. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 29. This Act shall take effect upon its approval provided that sections 1 through 8 shall take effect on July 1,

2005 and sections 9 through 26 shall take effect on July 1, 2006.

INTRODUCED BY:

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